Carney convenes First Nations leaders and premiers for first time in two decades, floats First Nations sovereign wealth fund

Prime Minister Mark Carney convened First Nations leaders and provincial premiers in Ottawa on October 26 to discuss how First Nations can directly share in the economic benefits of major infrastructure projects. According to the Prime Minister's Office, it was the first meeting of its kind in more than two decades, and participants agreed to develop new revenue-sharing mechanisms, including the potential creation of a new First Nations Sovereign Wealth Fund.

What was discussed

The meeting focused on new opportunities for First Nations to develop, operate and share in the economic benefits of major projects. Carney directed the Minister of Finance to work with First Nations leaders on how most effectively to establish such a fund, with the stated goal of giving First Nations peoples a direct stake in major projects.

The federal government also announced it will amend the First Nations Fiscal Management Act to expand the First Nations Finance Authority's lending authority, making it easier for First Nations to secure financing to invest in major projects and share in the returns. The move targets a long-standing barrier: without sufficient borrowing capacity, First Nations cannot easily take up equity stakes in major projects even when they want to participate.

A $260-million workforce fund

The other concrete measure announced on the day is $260 million over four years for a new Partnerships for Indigenous Workforce Readiness Fund, connecting Indigenous Peoples with jobs created by major projects. The government is also working on an Indigenous-focused stream of the $8-billion Team Canada Strong initiative to connect Indigenous workers with paid, entry-level trades jobs and get them onto job sites faster.

What to watch next

What has been announced so far is a direction and a mechanism: the fund's size, funding model, governance and timetable are not yet set and will depend on further talks between the finance minister and First Nations leaders. If established, it would be a first for Canada in giving First Nations a long-term revenue stake in major projects through a sovereign wealth fund structure, rather than one-off compensation or job placements alone. Details of the legislative amendment and the workforce fund are also still to come.